The Retail Robots Market is estimated to be valued at US$ 15.63 Bn in 2023 and is expected to exhibit a CAGR of 30.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Retail robots are automated machines that perform a variety of tasks in stores and warehouses without human labor. They are used for storage and retrieval, packaging and palletizing, transportation, and point of sales which helps in improving operational efficiency. Retail robots provide cost-effective solutions, reduce labor costs, and optimize store management.
Market key trends:
The growing demand for automation in retail stores to reduce operational costs is a key trend fueling the retail robots market growth. Automated stores require less manpower which significantly reduces labor costs for retailers. Moreover, retail robots work 24/7 and do not require breaks, thereby improving store efficiency. Also, automated solutions such as inventory management robots ensure minimal stock-outs and better inventory tracking. The use of automated technologies helps retailers to improve customer service by enabling them to focus resources on enhancing the customer shopping experience. This drives the adoption of retail robots across the globe.
Porter's Analysis
Threat of new entrants: New players face high capital requirement to enter into the retail robots market due to heavy investment needs in R&D. Bargaining power of buyers: Buyers have moderate bargaining power due presence of many established players however personalized services attract customers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute components however technological advantage increases bargaining power.
Threat of new substitutes: Threat of substitutes is moderate as presence of labors for routine works however robots gaining acceptance for complex and repetitive tasks.
Competitive rivalry: Intense due to presence of global and regional players focusing on product innovations.
SWOT Analysis
Strength: High productivity, cost efficiency, accuracy provided by retail robots. Customizable solutions help automate processes.
Weakness: High initial investment requirement limits adoption. Technical errors and glitches raise performance issues.
Opportunity: Growing e-commerce sector boost potential areas of automating inventory management, order picking. Rising labor costs increases demand.
Threats: Job losses in retail labor due to automation adoption. Security issues over malware attacks on networked systems.
Key Takeaways
The Global Retail Robots Market Trend is expected to witness high growth at a CAGR of 30% over the forecast period due to increasing labor costs and growing focus on operational efficiency. Asia Pacific dominated more than 30% of the market share in 2023 owing to rapid expansion of the retail sector in China and India.
Regional analysis North America is anticipated to exhibit lucrative growth through 2030. This is attributed to increasing investments by major retailers such as Walmart and Target in streamlining warehouse operations using robots. Adoption of retail robotics is growing across western European countries as well to enhance customer experience.
Key players operating in the retail robots market are Amazon Robotics, Bossa Nova, Simbe Robotics, ABB Robotics, Greyorange, Softbank Robotics, Honda Motor Co. Limited., and others. Amazon Robotics leads with wide offerings across fulfillment centers while Bossa Nova has expertise in retail shelf monitoring systems.
